provide information:
1 useful in investment and credit decisions
2 useful in assesing future cash flows
3 about company's resources, claims to those resources, and changes in them

What is GAAP?

Generally accepted accounting principles

What does "generally accepted" mean?

an authortative accounting rule making body has established a principle of reporting in a given area or that over time a given practice has been accepted as appropriate b/c of its universal application.

What orgnizations were instrumental in the development of GAAP?

SEC
AICPA
FASB
GASB

What is SEC?

Securties and exchange commission

What is AICPA

American Institute of Certified Public Accountants

What is FASB

financial accounting standards board

what is GASB?

government accounting standards board

what is CAP?

Committee on Accounting Procedure

Which group developed the 51 Accounting Research Bulletins?

CAP

What is the APB?

Accounting Principles Board

What were the major purposes of the APB?

determine appropriate practices, advance the written expression of accounting principles and narrow the area of difference and inconsistency in practice

What was the APB's official pronouncement?

APB Opinions

What did the Wheat Committee do?

The Wheat committee examined the APB and determined the necessary changes to attain better results...resulted in the demise of the APB and creation of 3 new organizations: FASB, FAF, FASAC.